According to sources familiar with the matter, Google has both a smart watch similar to the Pebble as well as a video game console under development, both running its Android operating system. Additionally, the same sources indicate a refresh of a media playing device similar to the Nexus Q is underway, buttressing previous rumors. Reportedly, Google hopes to design and market the devices itself, and plans on releasing at least one of them by the fall of 2013.

The report published by the Wall Street Journal claims that "Google is reacting in part to expectations that rival Apple will launch a video game console as part of its next Apple TV product release." Large screen console-like gaming is already possible with some apps using AirPlay video streaming from an iOS device connected wirelessly to an Apple TV.

Google won't be the first to market with an Android-powered gaming device, with the Ouya and the recently-delayed Shield both either at market or close to it. The media player market is fairly saturated with devices as well, with the Apple TV holding the lead in that category generally, and other assorted devices both running Android and not in the market segment as well.